ZB records 1 039pc income growth

02 Sep, 2022 - 00:09 0 Views

eBusiness Weekly

Michael Tome

ZB Financial Holdings (ZBFH) says the impressive operating income buoyed the group’s earnings in the half-year period to June 2022 to spur the group’s total income performance.

Shepherd Fungura, the bank’s chief executive, in the half-year financials said the bank’s operating income improved 1039 percent in inflation-adjusted terms to $11, 2 billion contributing more than half of the group’s total income, from $979 million in the 2021 half year period.

In the period, fees and commissions at $3, 9 billion contributed significantly to the group’s earnings having improved 16 percent from $3, 4 billion as at June 2021.

The group’s net interest income registered growth to $4, 1 billion in inflation-adjusted terms representing a 55 percent increase from $2.6 billion in 2021.Resultantly the group saw a 157 percent growth in total income to $20,9 billion from $8,5 billion while net profit surged 165 percent to $6, 1 billion from $2,3 billion attained in the prior comparable period.

“This performance outturn was mainly underpinned by a 1 039 percent rise in other operating income, followed by banking commissions and fees, which saw a 16 percent improvement,” said Fungura.

The group’s total assets stood at $125 billion as at 30 June 2022 representing a modest 13 percent growth in inflation adjusted terms, from $111 billion as at 31 December 2021.

However, the group recorded a 58 percent increase in operating costs to $9.4 billion in June 2022 from $6 billion in the comparable period last year attributable to the upward pressure on cost structures because of the inflationary environment.

Also, net income from lending activities retreated five percent to $1, 8 billion in the period under review from $1, 9 billion in June 2021. However, historical net income from lending activities rose by one percent to $607 million.

Net insurance income improved by 45 percent to $1, 016 billion from $698 million last year attributed to the 43 percent rise in gross premiums to $2, 9 billion from $2 billion.

Deposits and other related funding account balances grew marginally to $43, 1 billion from $43 billion as at 31 December 2021.

According to Fungura on banking operations, ZB Bank’s net profit after tax improved to $5, 1 billion from $1, 5 billion in the comparable period in 2021.

The bank’s total assets improved 12, 7 percent to $91, billion as at 30 June 2022 from $81, 1 billion as at 31 December 2021.

In the insurance business, ZB Reinsurance saw a net profit after tax growth to $991 million for the period ending 30 June 2022 as the company maintained good relations with its cedants and retrocession partners during the period.

“Expansion into the Botswana market is now at an advanced stage, as the company opened for business on 1 June 2022,” said Fungura.

ZBFH chairman, Pamela Chiromo, said the group will carry on with its organisational transformation programmes in the remaining months of 2022 as the group continues to seek ways of preserving its capital from inflation-induced value erosion.

“In addition, a significant focus will be targeted at completing the sprints of the Organizational Transformation Programme with the goal of making happy customers through the provision of service excellence; and also enhancing group performance outturn,” said Chiromo.

The program is designed to transform the organisational design into a more people-centric one and to enhance the customer journey in order to improve the Group’s services to customers through a combination of digitalisation and service excellence.

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